The Central Bank of Nigeria has released the Manufacturer’s Purchasing Managers’ Index PMI survey report which hit 56.3 index points in February indicating an expansion in the manufacturing sector for the eleventh consecutive time. The index, however, grew at a slower rate when compared to that in the previous months.Recall that the index had hit 57.3 index points in January.
In arriving at this monthly index, a group of selected companies are asked their view each month on core variables in their business. The respondents, who are basically the purchasing manager in a larger firm, and has three possible replies: better, unchanged or worse than the previous month.
According to the standard methodology, 50 marks a neutral reading and anything higher suggests that the manufacturing economy is expanding. This Index takes the temperature of the manufacturing sector in the country.
According to the report, Of the 15 sub-sectors surveyed, 10 reported growth in the review month in the following order:
- Plastics & rubber products.
- Textile, apparel.
- Leather & footwear.
- Appliances & components.
- Paper products.
- Primary metal.
- Petroleum & coal products.
- Chemical & pharmaceutical products.
- Food beverage & tobacco products.
- Electrical equipment.
- Furniture & related products.
The remaining 5 sub-sectors contracted in the following order:
- Printing & related support activities.
- Nonmetallic mineral products.
- Fabricated metal products.
- Transportation equipment.
On the production level, the CBN report stated that at 57.8 points, the production level index for the manufacturing sector grew for the 12th consecutive month in February 2018. Six of the 15 manufacturing sub-sectors recorded
increase in production level, 6 remained unchanged, while the remaining 3 recorded declines in production level.
At 55.6 points, the new orders index grew for the eleventh consecutive month, indicating an increase in new orders in February 2018. Eight sub-sectors reported growth, 4 remained unchanged while 3 contracted in the review month.
The Manufacturing sector inventories index grew for the eleventh consecutive month in February 2018. At 58.1 points, the index grew at a faster rate when compared to its level in the previous month.
The employment level index in February 2018 stood at 53.9 points, indicating growth in employment level for the tenth consecutive month. Of the 15 sub-sectors, 6 sub-sectors
increased their employment level, 2 remained unchanged while 7 reduced their employment level in the review month.
The manufacturing supplier delivery time index stood at 57.0 points in February 2018, indicating faster supplier delivery time for the ninth consecutive month.